WESCO International Inc (WCC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,313,100 | 5,346,000 | 4,701,540 | 4,369,950 | 1,257,070 |
| Total assets | US$ in thousands | 15,060,900 | 14,811,700 | 12,617,700 | 11,880,200 | 5,017,640 |
| Debt-to-assets ratio | 0.35 | 0.36 | 0.37 | 0.37 | 0.25 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,313,100K ÷ $15,060,900K
= 0.35
The debt-to-assets ratio of Wesco International, Inc. has shown a trend of fluctuation over the past five years. In 2023, the ratio decreased to 0.35 from 0.37 in 2022 and remained lower compared to the ratios of 0.37 in 2021 and 0.41 in 2020. However, it was higher than the ratio of 0.26 in 2019.
A decreasing trend in the debt-to-assets ratio indicates that Wesco International, Inc. has been reducing its reliance on debt financing relative to its total assets, which can be a positive sign as it suggests a strengthening financial position and lower financial risk.
It is important to consider the reasons behind these fluctuations in the debt-to-assets ratio, such as changes in the company's capital structure, profitability, and overall financial strategy. This ratio provides insight into how effectively Wesco International, Inc. is managing its debt levels and the proportion of its assets funded by debt. The company may be actively managing its debt levels to improve its financial stability and profitability.
Peer comparison
Dec 31, 2023